High oil prices and an array of government incentives in various countries are leading to soaring rates of investment in renewable energy, according to the United Nations' annual "Global Trends in Sustainable Energy Investment" report. The UN report calculates global investment capital flows into renewable energy companies reached $100 billion for the first time in history in 2008.

In India investments in renewable energy increased from $39.24 billion in 2001 to $336.78 billion in 2009. There was an increase in total investments in the renewable energy sector by 43.4% in 2009 from $283.11 billion in 2008. Investments in the renewable energy industry are likely to increase in the forecast period 2009-15 and are expected to reach $653.35 billion by 2015. Furthermore, a significant shortage of energy in general, a fast growing economy and the launch of the solar 2020 mission aiming at adding 20’000 MW of solar power, are the major drivers of the renewable xector in India.

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